Pinnacle Obtains Final Order of the Court Approving Arrangement with Drax Group
Pinnacle Renewable Energy Inc. (“Pinnacle” or the “Company”) (TSX: PL) today announced that the Company obtained a final order from the Supreme Court of British Columbia approving the previously announced plan of arrangement under the Business Corporations Act (British Columbia), pursuant to which Drax Group plc (“Drax”) (LSE:DRX) through its wholly-owned subsidiary, Drax Canadian Holdings Inc., will acquire all of the issued and outstanding common shares (“Shares”) of the Company for C$11.30 in cash per Share (the “Arrangement”).
All of the conditions to the completion of the Arrangement have now been satisfied or waived, excluding any conditions that, by their terms, cannot be satisfied or waived until the effective date of the Arrangement. Completion of the Arrangement is expected to occur on April 13, 2021.
Pinnacle is the second largest producer of industrial wood pellets in the world. The Company’s products are used to displace fossil fuels in the production of baseload electrical power in key markets around the world. The Company operates nine production facilities in Western Canada and one in Alabama, with one additional facility under construction in Alabama and more in development. The Company also owns a port terminal in Prince Rupert, BC. Pinnacle has entered into long-term, take-or-pay contracts with utilities in the U.K., Europe and Asia that represent an average of 99% of its production capacity through 2026.
Source: Pinnacle Renewable Energy Inc.